Heineken Rejects SABMiller's Acquisition Offer

Deal would help SABMiller fend off AB InBev, which is preparing bid

September 16, 2014

AMSTERDAM -- Heineken has confirmed a Bloomberg report that SABMiller has approached its owners with an offer to acquire the smaller brewer. Heineken has issued a press statement that it "has consulted with its majority shareholder and concluded that SABMiller's proposal is non-actionable."

SABMiller's offer is meant to help defend it against a potential bid by Anheuser-Busch InBev, people with knowledge of the matter told Bloomberg.

AB InBev is talking to banks about financing what could be a $122 billion deal to buy SABMiller, a person familiar with the matter told The Wall Street Journal in a separate report. A combination of the world's two largest brewing companies has been rumored for years, but a revival in global merger activity this year has sparked renewed speculation about a deal, the report said.

AB InBev is not in active discussions with SABMiller, the source said, explaining that the company is waiting to line up its financing before making a formal approach.

SABMiller's offer to Heineken, made in the last two weeks, would have made the Heineken family one of the largest holders in the combined company, said Bloomberg. The family owners have rejected the approach as they don't want to lose control of the 34 billion-euro ($44 billion), Amsterdam-based brewer, the report added.

Spokespersons for SABMiller and Heineken declined to comment to the news agency.

"The Heineken family has informed SABMiller, Heineken and Heineken Holding NV of its intention to preserve the heritage and identity of Heineken as an independent company," Heineken's statement continued. "The Heineken family and Heineken NV's management are confident that the company will continue to deliver growth and shareholder value. Heineken does not intend to make any further public statements in relation to this announcement."

Since 2003 CSP magazine has ranked No. 1 in readership and market share over all other industry publications. C-store marketers have identified CSP as the preferred magazine source for their trade marketing communications. With industry-leading, highly targeted circulation to more than 100,000 subscribers, CSP reaches the key convenience retailing decision-makers fifteen times a year.